The State of Subprime

Both of the following are from the NY Fed. Here, first, is a state-by-state look, as of May 2009, at how many subprime mortgage loans have been made per 1,000 housing units. The darker the red, the more subprime loans (Florida is the highest at 27.0 loans per 1,000 homes).

Here, next, is a chart mapping the change in the same statistic over the past six months (through May). Darker green means a sharper reduction in the number of subprime loans per 1,000 homes.

Mostly it tracks that the states with the highest percentage of subprime loans have had the highest pullbacks. But notice also the discrepancies. The subprime markets in California and Nevada, which are smaller than the market in Florida, are nonetheless receding at a faster rate. Virginia’s relatively modest subprime market is receding quite quickly. Same with Wyoming’s. And Texas’s relatively broad subprime market, like Florida’s, isn’t receding as fast as you might expect.

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the author | mckinsey consultant based in london | former speechwriter for queen rania of jordan | former economics writer at council on foreign relations | winner of 2009 emmy award | see full profile at LeeHudsonTeslik.com